Coconut oil is extracted from the meat of mature coconut, found throughout tropical climates. Traditionally, the oil has been used as a source of fat in the diet, including as a cooking oil, but did you know the oil also has been tested for industrial uses because of its natural lubricant properties?
Today coconut oil is highly prized for its use in cosmetics and skin care products. In specific, coconut oil has moisturizing and skin softening properties, and well as film-forming properties so the oil "seals in" moisture, so to speak. In addition, coconut oil is often recommended for use with dry skin, sensitive skin, and can even be used to help reinvigorate dry, damaged hair  and in lip balms. Recent research even suggests the lauric acid found in coconut oil may be useful with acne!
If you like to make your own natural skin and hair care products, coconut oil is a wonderful, versatile base oil to use. And, it is relatively unscented, which means you can add essential oils for your own custom blend.
For more information about the benefits of coconut oil, you may want to check out the Coconut Research Center: http://www.coconutresearchcenter.org/index.htm
 Rele AS, Mohile RB. Effect of mineral oil, sunflower oil, and coconut oil on prevention of hair damage. J Cosmet Sci. 2003 Mar-Apr;54(2):175-92. Accessed online: http://www.ncbi.nlm.nih.gov/pubmed/12715094?dopt=Abstract
 Nakatsuji T, Kao MC, Fang JY, Zouboulis CC, Zhang L, Gallo RL, Huang CM. Antimicrobial property of lauric acid against Propionibacterium acnes: its therapeutic potential for inflammatory acne vulgaris. J Invest Dermatol. 2009 Oct;129(10):2480-8. Epub 2009 Apr 23.